Archive for the ‘Collection Agency’ Category
February 1st, 2011 | 
Author: To help you organize your thoughts and give you an idea of the next few stages of your debt settlement plan, we have put together this list of 4 steps you can take after you’ve received a call from a debt collection agency:
Verify the information you received. Find out if the debt in question is actually your debt and report inconsistencies should there be any. Digging up your own financial documents will help you map out just how much you actually owe a specific creditor. Looking up the collection agency’s legitimacy will also protect you from fraud.
Do your research. Spend some time to explore available debt settlement options through online references or credit consultation agencies. Knowing just what kind of arrangement your situation allows you will help you better negotiate with your creditor when you speak next.
Understand the tax consequences. Do not forget to figure tax in your grand debt settlement scheme. The amount difference between what you originally owe your creditor and what you actually paid off may be chalked up as taxable income. If the amount is more than $600, expect your creditors or collectors to report it to the Internal Revenue Service. Make sure that your forgiven debt isn’t sold off to another creditor if you’re willing to pay the tax involved.
Consult with an attorney. Depending on the shape your finances are in, you might want to consider filing for bankruptcy. The Florida Consumer Attorney know that this option should only be the last resort of every consumer as it can deal a huge amount of damage to your credit rating and future finances.
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The Fair Debt Collection Practices Act known as the FDCPA is a law that governs the actions of the debt collectors, when they are collecting personal loans from consumers. The law protects you (the consumer) against harassment from collectors. If you are knee deep in debt and are having trouble with debt management, then there are high chances that collectors are bothering you. The FDCPA lays down strict guidelines about what debt collectors can or cannot do or say to you. If you are aware of these, then it will help you avoid unnecessary harassment from collectors.
However, your debt collector’s may often violate the law and bother you. You have full rights to file a complaint against your debtors. You can take the following actions against them.
1. File a Complaint with the Federal Trade Commission: If your debt collector is bothering you, then you can contact and file a complaint with the Federal Trade Commission. However, you should know that the FTC does not resolve problems but only records them. It also looks for patterns and trends when it comes to a particular business. To file a complaint with the FTC you can write directly to the Federal Trade Commission. You can also write to the consumer response centre. Filing a complaint online is anther option you can consider.
2. File a complaint with the attorney general: You can report a violation of rights and can file a complaint against your collector by first contacting your attorney. Your attorney’s office is supposed to know if your state has any other laws that need to be considered apart from the federal debt collection laws.
3. File a complaint with the Better Business Bureau: If your debt collector is violating the laws of The Fair Debt Collection Practices Act, then you can report him or her to the Better Business Bureau.
4. File a civil suit: You may also file a civil suit in your state or in the federal court for about $1,000. This will also include the damages.
These are a few things that you can do in case your creditor violates the law. You must try and have as much as evidence that will support your claims. Get all the possible records, such as dates and time of phone calls. Get the name of the collection agency. You must also have the name of the person who spoke to you and the details of the violation.